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UDSA: Corn sales recover after last week's tumble

According to the USDA’s latest “Weekly Export Sales” report, corn net sales of 745,800 metric tons (MT) for 2013-2014 were up 9 percent from the previous week but down 20 percent from the four-week average.

Doane Advisory Services shows that the financial markets weighed on commodities Thursday morning. The yellow grain market is still suffering from a dearth of pertinent crop news; however, Wednesday’s U.S. dollar advance and overnight follow-through in response to Fed Chairman Yellen’s suggestion that the Fed might be forced to raise U.S. interest rates next year held negative implications for commodity demand, which probably explains the overnight slide. May corn slid 3.25 cents to $4.845/bushel in early Thursday trading, while December lost 2.25 to $4.865.

REPORT

THIS WEEK

LAST WEEK

DIFFERENCE

Sales

745,804

683,416

62,388

SALES

10 WEEKS

27 WEEKS

THIS YEAR

Average

1,080,134

1,093,163

996,054

High

1,837,865

4,555,497

1,837,865

Low

683,416

154,543

155,262

The report also showed that soybean net sales of 202,200 MT for 2013-2014 were up noticeably from the previous week but down 31 percent from the four-week average.

Exports of 1,119,100 MT were up 38 percent from the previous week, but down 11 percent from the four-week average. The primary destinations were China (662,800 MT), Mexico (102,300 MT), Indonesia (94,000 MT), Taiwan (83,600 MT), and Portugal (67,100 MT).

The soy complex posted a mixed Wednesday night showing. Although soybean and product markets were generally strong yesterday, they set back significantly from their intra-day highs. That development, along with the financial market reaction to Chairman Yellen’s statement, very likely discouraged bulls last night. May soybeans rose 4.25 cents to $14.355/bushel in pre-dawn Thursday action, while May soyoil sank 0.19 cents to 41.91 cents/pound, and May soymeal gained $3.2 at $465.2/ton.